Exhibit 20-2 -Refer to Exhibit 20-2.The Market for Good X Is Initially

Multiple Choice

Exhibit 20-2

-Refer to Exhibit 20-2.The market for good X is initially in equilibrium at $5.The government then places a per-unit tax on good X as shown by the shift of S₁ to S₂.What is an expression for the tax revenue raised?

A) $2.25 x Q₂
B) $1.25 x Q₂
C) $1.00 x Q₂
D) ($1.00 x Q₂) + [$1.25 x (Q₁ - Q₂) ]
E) $2.25 x (Q₁ - Q₂)